BIDDING DOCUMENTS - Punjab Documents .pdf · 315-ALFALAH BUILDING, THE MALL, LAHORE. Page 2...

Rs.1,000/-

TENDER NO. PSIC/C&M/MDP-472

BIDDING DOCUMENTS

HIRING OF SERVICES OF NON-PROFIT / NON-COMMERCIAL

MICROFINANCE INSTITUTION AS SERVICE PROVIDER

ORGANIZATION (SPO) FOR THE SCHEME TITLED “GRADUATION

AND INCOME GENERATION SCHEME FOR PWDs IN PUNJAB” FOR

DISBURSEMENT AND RECOVERY OF INTEREST FREE LOANS TO

THE KHIDMAT CARD BENEFICIARIES AND OTHER PWDs IN

PUNJAB

PUNJAB SMALL INDUSTRIES CORPORATION DIRECTORATE OF CREDIT & MARKETING

315-ALFALAH BUILDING, THE MALL, LAHORE

DESCRIPTION OF THE ASSIGNMENT:

The Constitution of Pakistan guarantees provision of basic necessities and an enabling

environment for the personal and professional development of each individual. These rights

are enshrined in the country’s constitution enacted in 1973. Government of Pakistan is a

signatory to various human rights conventions and development frameworks to provide and

safeguard fundamental human rights. Together these national and international commitments

bind the state to provide comprehensive social assistance services to all, while prioritizing the

poor and the vulnerable such as women, children, disabled, elderly, drug addicts and minority

groups Disability is a development issue, because of its correlation with poverty: disability

may increase the risk of poverty, and poverty may increase the incidence of disability. It is

well evidenced that the onset of disability can often lead to the worsening of social and

economic well-being and poverty through a multitude of channels including the adverse

impact on education, employment, earnings and the increased expenditures related to cure,

treatment or restricted mobility.

Rehabilitation of these PWDs is instrumental in enabling PWDs to live, as far as

possible, independently and gainfully within their homes and communities. Access to a

rehabilitation program can decrease the consequences of disability, improve health and

quality of life and reduce the use of health services.

Chief Minister Punjab approved the launch of Khidmat Card program in a meeting

dated 14.07.2015 for the most marginalized and vulnerable people in Punjab. The first target

group of this program were PWDs below the PMT (Proxy Means Test) Score of 20 as per

Benazir Income Support Program (BISP) data. Proxy Means Test is the assessment of the

Socio-Economic status of individuals on the basis of the assets their household possesses. In

compliance of the directions of the Chief Minister, Punjab Social Protection Authority

acquired data of all categories of PWDs in Punjab living below the PMT Score 20, from

BISP and issued them Khidmat Card subject to verification of disability by Disability

Assessment Boards constituted in all districts. People with following disabilities are eligible

for Khidmat Card;

i. Upper limbs disabilities

ii. Lower limbs disabilities

iii. Visual impairment

iv. Hearing impairment

v. Speech impairment

vi. Mentally Challenged

Since the launch of Khidmat Card Program on 29.12.2015 almost 150000 self-

reported PWDs have been mobilized by 36 district governments and after disability

verifications, some 70000 of them have been issued Khidmat Cards as of the writing of this

paper. Khidmat Card is basically an ATM card with branchless banking option through which

currently Rs.3600 per quarter (every three months) are being transferred to the accounts of

these disabled people as an Unconditional Cash Transfer.

Social Protection Authority (PSPA), in collaboration with Punjab Small Industries

Corporation (PSIC), through its Service Providing Organization (SPO), intends to provide

interest free loans to the beneficiaries of Khidmat Card Program on the one hand and all other

PWDs in Punjab. All applicants however need to have a viable business plan and have either

obtained skill training/internship from the skill providing institutes in public/ private sectors

or prepared to undergo the prescribed training / internship relevant to their intended means of

livelihood. Accordingly, this project has the following objectives to address some of the

issues as mentioned above:-

To encourage self-employment amongst the Khidmat card beneficiaries and other

PWDs by providing interest free loans to enable them to start their own business for

their economic uplift.

To reach out to the poor and vulnerable segments of the society.

To protect the social rights of the target segment of the society.

To encourage self-employment and skill training of the PWDs.

SCOPE OF THE ASSIGMENT:

The scope of the assignment will be as under:-

i. Selection of the potential borrowers from the database made available by PSIC

ii. Provision of Orientation sessions / internship to the target group

iii. Submission of request for provision of funds for disbursement

iv. Approval of loan according to SPO lending procedure, PSIC eligibility criteria and

guidelines of the approved project

v. Disbursement of loan to the borrower as per the schedule defined in the list of

activities

vi. Recovery of the loan

vii. Submission of request for release of service charges against actual disbursement

as the rate agreed in agreement

viii. Submission of progress report

ix. Provision of record/documents as and when required by PSIC/PSPA

x. Presentation to the committee regarding progress of the scheme

a) INVITATION TO BIDS:

PUNJAB SMALL INDUSTRIES CORPORATION DIRECTORATE OF CREDIT & MARKETING

315-ALFALAH BUILDING, THE MALL, LAHORE

INVITATION TO PROPOSALS

Punjab Small Industries Corporation (PSIC) in collaboration with Punjab Social Protection

Authority (PSPA) is going to launch an interest free loan scheme titled “Graduation and Income

Generation Scheme for PWDs in Punjab”. Under this scheme, the Corporation intends to advance

interest free loans with the revolving fund of PKR.250.00 million to the Khidmat Card Beneficiaries

and other Persons with Disabilities (PWDs) who have a viable business plan. The Corporation

intends to hire the services of Non-profit/Non-commercial Microfinance Institution as Service

Provider Organization (SPO) fulfilling the below mentioned eligibility criteria for disbursement and

recovery of interest free loans to the aforesaid target group. Sealed bids from eligible bidders are

invited for the said assignment as per detail mentioned in the bidding documents.

Name of

Procuring

Agency

Punjab Small Industries Corporation, Directorate of Credit & Marketing, 315-

Alfalah Building, the Mall, Lahore

Tender No. PSIC/C&M/MDP-472

Title of

Procurement

Hiring of services of non-profit / non-commercial microfinance institution as

Service Provider Organization (SPO) for the scheme titled “Graduation and

Income Generation Scheme for PWDs in Punjab” for disbursement and

recovery of interest free loans to the Khidmat Card Beneficiaries and other

PWDs

Eligibility i. Registered with any government (Provincial/Federal) under the relevant law

ii. Member of Pakistan Center for Philanthropy (PCP) or Member of Pakistan

Microfinance Network (PMN)

iii. Atleast two years’ experience of micro-financing with Federal & Provincial

Governments

iv. Experience of micro-financing to PWDs

v. Experience of delivery and managing interest free micro credit loan portfolio

for at least 3 years

vi. Previous experience of giving at least 100,000 interest free loans

(Documentary evidence must be attached with technical proposals)

Procedure of

open

competitive

bidding.

Single Stage-Two Envelope Procedure prescribed in Rule-38-2(a) PPR-2014

shall be followed. A single package containing Separate Technical & Financial

Bids, duly completed, signed stamped, sealed and in complete conformity with

bidding Documents should be submitted / furnished.

Tender Fee Rs.1,000/- per set (non-refundable) payment in cash with “Cashier, of Punjab

Small Industries Corporation, Room No.320, Alfalah Building, the Mall,

Lahore.” The deposit slip must accompany the technical proposal, else wise the

bid will be stand rejected

Contact Person for

seeking bidding

documents.

Director (Credit & Marketing), Punjab Small Industries Corporation, Room

No.315, Alfalah Building, the Mall, Lahore. The bidding documents are

available for the interested bidders, immediately after publication of the

advertisement.

Last date for

obtaining bidding

documents.

On or before closing date on submission of written application to the Director

(Credit & Marketing), Punjab Small Industries Corporation.

Closing Date &

Time as well as

place for receiving

bids.

02.02.2017 (Thursday) at 11:00 am. The bid should be dropped in the Tender

Box to be placed at reception of PSIC, Head Office, 1st Floor, Al-Falah

Building, The Mall, Lahore on or before closing date & time

Time, date and

place of public

opening of bids.

02.02.2017 (Thursday) at 11:30 am in the committee room of PSIC, Head

Office, 1st Floor, Al-Falah Building, The Mall, Lahore.

Amount of bid

security

PKR.200,000/- (Re-fundable) equivalent to 1% of the estimated price in the

shape of Pay Order/Bank Draft in the name of “Punjab Small Industries

Corporation” accompanied with technical proposal.

Time period for

performance of

contract.

Initially (02) years from signing of Service Agreement and it may be extended

Bid validity 90 days

a) Advertisement may also be seen on the website’s www.psic.gop.pk & www.ppra.punjab.gov.pk

b) Tender received through Telex / Fax and through mail on 02.02.2017 (Thursday) after 11:00 am of

the opening date will not be entertained / considered.

c) Director (Credit & Marketing), Punjab Small Industries Corporation, Room No.315, Alfalah

Building, the Mall, Lahore, Ph. No. 042-99201432 may be contacted for queries during office hours.

Director (Credit & Marketing)

Punjab Small Industries Corporation

315-Alfalah Building, The Mall, Lahore. Phone No. 042-99201432

b) INSTRUCTIONS TO BIDDERS:

1. Bidding documents can be purchased upon payment of fee Rs.1,000/- from Cashier,

of Punjab Small Industries Corporation, Room No.320, Alfalah Building, the Mall,

Lahore during office hours on submission of written application to Director (Credit &

Marketing). The deposit slip must accompany the technical proposal, else wise the

bid will stand rejected.

2. Tenders shall be addressed to Director (Credit & Marketing), Punjab Small Industries

Corporation, Room No.315, Alfalah Building, the Mall, Lahore.

3. The firms fulfilling the eligibility criteria may only participate in bidding process.

Documentary evidence must be attached with technical proposals.

4. Bidders should note that each and every page of the bidding documents shall be

signed and stamped by the bidders.

5. Bid Security. PKR.200,000/- (Re-fundable) in the shape of Pay Order/Bank Draft in

the name of “Punjab Small Industries Corporation” accompanied with technical

proposal.

6. Tender should be dropped in the Tender Box to be placed at reception of PSIC, Head

Office, 1st Floor, Al-Falah Building, The Mall, Lahore on or before closing date &

time.

7. Tender received through Telex / Fax and through mail on 02.02.2017 after 11:00 am

of the opening date will not be entertained / considered.

8. Bids shall be submitted as per PPRA Rules Clause 38(2a) Single Stage-Two

Envelope Procedure prescribed in Rule-38-2(a) PPRA-2014 shall be followed. A

single package containing Separate Technical & Financial Bids, duly completed,

signed stamped, sealed and in complete conformity with bidding Documents should

be submitted/furnished. The Envelops shall be marked as “FINANCIAL

PROPOSALS” and “TECHNICAL PROPOSALS” in bold and UPPERCASE letter

to avoid confusions.

9. Initially, only the sealed bid package will be opened by the “Tender Opening

Committee” on scheduled date and time as specified in Tender Notice in the

Committee Room of PSIC, Head Office, 1st Floor, Al-Falah Building, The Mall,

Lahore in the presence of bidders who may like to be presented.

10. Envelops marked “TECHNICAL PROPOSAL” shall be opened by the “Technical

Committee” on due date and time whereas envelops marked as “FINANCIAL

PROPOSAL” will be retained unopened in the custody of procuring agency.

11. The procuring agency will evaluate the technical proposal according to the evaluation

criteria without reference to the price and shall reject any proposal which does not

conform to the specified requirements.

12. During the technical evaluation, no amendments in the technical proposal shall be

permitted.

13. Envelops marked “FINANCIAL PROPOSAL” of the only technically responsive

bids shall be opened publically on the date & time and place to be announced &

communicated to the bidders in advance by the “Financial Committee”.

Participating bidders will be informed accordingly within the bid validity period.

14. The Financial Proposal of the bid found “Technically Non-Responsive” shall be

returned un-opened to the respective bidders.

15. The financial bid found to be the lowest evaluated shall be accepted.

16. Service Charges, to be mentioned in Financial Bid, shall be quoted in “% age” of the

amount of disbursement under this scheme.

17. Conditional / incomplete bid will be liable for rejection.

18. The bid quoted by SPO shall include all expenses to be incurred on disbursement and

recovery of loans.

19. Financial proposal should be for expected disbursement of Rs. 291.67 million

c) BID FORM

The Director, Credit& Marketing

Punjab Small Industries Corporation,

315, Alfalah Building, The Mall, Lahore,

Ph. No. 042-99201432

Subject:- HIRING OF SERVICES OF NON-PROFIT / NON-COMMERCIAL

MICROFINANCE INSTITUTION AS SERVICE PROVIDER

ORGANIZATION (SPO) FOR THE SCHEME TITLED

“GRADUATION AND INCOME GENERATION SCHEME FOR PWDs

IN PUNJAB” FOR DISBURSEMENT AND RECOVERY OF

INTEREST FREE LOANS TO THE KHIDMAT CARD

BENEFICIARIES AND OTHER PWDs IN PUNJAB

Reference your advertisement dated _______ we the undersigned agree to

provide our services for disbursement and recovery of interest free loans to the Khidmat Card

Beneficiaries and other Persons with Disabilities (PWDs).

The detail of financial proposal is hereunder:-

Particulars

Service Charges

(including all applicable

expenditures / taxes)

%age of service charges against actual disbursed amount ________% of total

disbursed amount

Total Amount of Service Charges for expected

disbursement of Rs. 291.67 million

PKR._____________

Signature: _______________

Dated: __________ Name: _______________

M/s: _______________

Address: _______________

d). FORM OF CONTRACT

(SERVICE AGREEMENT)

(Proposed)

This Service Agreement is made at Lahore this _______day of _______, 2017

BETWEEN

PUNJAB SMALL INDUSTRIES CORPORATION (PSIC)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

(hereinafter referred to as the Competent Authority, which expression shall include its

successors-in-interest, attorneys and assigns) Party of the First Part.

AND

Name & Introduction of SPO with competent Authority (hereinafter referred to as the

Competent Authority, which expression shall include his successors-in-interest, attorneys and

assigns) Party of the Second Part.

PUNJAB SMALL INDUSTRIES CORPORATION i.e. (PSIC) and Name of SPO

hereinafter are collectively referred to as the “Parties”

WHEREAS PSIC is desirous to create revolving fund amounting to PKR 250.00 million for

providing interest free micro loans to the Khidmat Card Beneficiaries and other Persons with

Disabilities (PWDs) who have a viable business plan and Name of SPO is willing to

undertake responsibility of interest free micro lending activities for supporting Khidmat Card

beneficiaries and other PWDs for the project period of 02 years (may be extended on mutual

consent). The project will be executed in collaboration between PSIC, Punjab Social

Protection Authority (PSPA) and Name of SPO for creating enabling environment for PWDs

by providing them livelihood opportunities through provision of interest free loans to the

Khidmat Card Beneficiaries and other PWDs who have a viable business plan and to promote

the culture of internships before starting a business, financed by interest free loans, funded by

Government of the Punjab.

The microfinance fund” of PKR 250.00 million provided by Government of the Punjab in the

first year will be revolved and benefit thousands of people over the project period of two (02)

years. Government of the Punjab may add additional funds in subsequent years in the

scheme.

Definitions: In the Agreement, the words and expressions defined hereinafter shall, except

where the context requires otherwise, have the following meaning:-

1.1 “Agreement” shall mean the Agreement executed between PSIC and Name

of SPO for implementation of the Scheme in all districts of the Punjab and

shall include annexures, appendix, schedules appended therewith and

amendments made therein.

1.2 “Approving Authority” shall mean an official of Name of SPO duly

authorized to approve the interest free loan cases.

1.3 “Audit” shall mean the audit undertaken by the Audit Firm pursuant to the

Audit Terms of Reference (for brief the “Audit TORs”) prescribed by PSIC

& PSPA.

1.4 “Audit Firm” shall mean an independent firm of chartered accountants with

sufficient expertise, experience and resources to conduct the Audit

contemplated in the Agreement. The Audit Firm shall be selected by

PSIC/PSPA in a transparent manner from amongst the renowned accountancy

firms in the country.

1.5 “Audit Terms of Reference” shall mean the terms of reference outlining the

scope of work to be undertaken by the Audit Firm for purposes of the Audit,

and shall be prescribed by PSIC/PSPA.

1.6 “Borrower” shall mean Khidmat Card Beneficiaries and other PWDs who

have been approved by Name of SPO to become a borrower of interest free

loan facility or has availed an interest free loan facility extended by Name of

SPO.

1.7 “Branch” shall mean the Place / Office of the Name of SPO that will be used

for delivery of services of scheme.

1.8 “Borrower Account” shall mean account of borrower maintained with Name

of SPO, in which disbursement to borrower and recovery from the borrower

will be entertained.

1.9 “Standard Accounting Principle” shall mean the accounting practice being

used in Pakistan, notifies by Securities and Exchange Commission of Pakistan

under Pakistani Companies Ordinance (1984).

1.10 “Working Day” shall mean a day on which the office of the parties are open

for working.

1.11 “Clean Credit History” shall mean financial record of an intended borrower

having no default in preceding three years in any financial institution.

1.12 “Eligibility Criteria” shall mean the criteria spelled out in the Scheme,

Project Documents and/or Credit Operational Manual of Name of SPO.

1.13 “External Recovery Expenses” shall mean all legal, consulting and other

fees and out-of-pocket costs incurred by Name of SPO in collecting defaulted

amount from the borrower.

1.14 “Existing Clients” shall mean and include those clients having a credit

history from any financial institution at the time of launch of the Scheme.

1.15 “Facility Documentation” shall mean Name of SPO standard financing and

security documentation, generally used to document interest free credit

facility, executed between the Borrower and Name of SPO, after internal

approval of Name of SPO after satisfaction of credit policies.

1.16 “Force Majeure” shall mean and include an event, which is beyond the

reasonable control of a Party, not foreseeable, unavoidable, and which makes a

Party’s performance of its obligations hereunder impossible or so impractical

as reasonably to be considered impossible in the circumstances, and includes,

but is not limited to, war, riots, civil disorder, earthquake, fire, explosion,

storm, flood or other adverse weather conditions, strikes, lockouts or other

industrial action (except where such strikes, lockouts or other industrial action

are within the power of the Party invoking Force Majeure to prevent),

confiscation or any other action by Government agencies. Force Majeure shall

not include:

a) any event, which is caused by the negligence or intentional action of a

Party or its agents or its employees;

b) any event, which a diligent Party could reasonably have been expected

both to take into account at the time of the conclusion of the

Agreement, and avoid or overcome in the carrying out of its obligations

hereunder; and

c) insufficiency of funds or failure to make any payment required

hereunder.

1.17 “Fresh Borrower” shall mean a Khidmat Card beneficiary or other PWD

who is eligible to become a Borrower, but has no current credit history with

any financial institute at the time of launching of the Scheme.

1.18 “GoPb” shall mean Government of the Punjab.

1.19 “Implementing Partners” shall mean and include PSIC, PSPA, Name of

SPO and other government departments involved in or connected with the

Scheme.

1.20 “PSPA” shall mean the Punjab Social Protection Authority.

1.21 “Major Gap” shall mean the major gap identified and agreed to by the Parties

on their own initiative or on indication of the Audit Firm.

1.22 “Minor Gap” shall mean minor gaps identified and agreed by the Parties on

their own initiative or on indication of the Audit Firm.

1.23 “PSIC” shall mean the Punjab Small Industries Corporation.

1.24 “PWDs” shall mean the Persons with Disabilities.

1.25 “Principle Amount" shall mean the principle amount due and payable by a

Borrower to Name of SPO under the Scheme determined by Name of SPO,

on the basis of record, and on the basis of Service Charges are calculated or

estimated by Name of SPO.

1.26 “Registration” shall mean enrollment of the Khidmat Card beneficiaries and

other PWDs with Name of SPO for taking orientation sessions and interest

free loans under the scheme.

1.27 “Repayment Schedule” shall mean the repayment schedule of the disbursed

amount issued to the borrower by Name of SPO, as per recovery mechanism

and agreed between the borrower and Name of SPO.

1.28 “PCC” shall mean Project Coordination Committee consisting of following

four (04) members to review the progress of the scheme on monthly basis:-

i. Chief Operating Officer / DCEO,PSPA (Convener)

ii. Director (Program), PSPA (Member)

iii. Director, Credit & Marketing, PSIC(Member)

iv. Representative of SPO concerned. (Member)

1.29 “PI&OC” shall mean Project Implementation & Oversight Committee

consisting of following five (05) members to review the progress of the

scheme and to ensure the compliance of the decisions of PCC on quarterly

basis:-

i. Vice Chairperson, PSPA (Convener)

ii. MD,PSIC (Member)

iii. COO / DCEO, PSPA (Member)

iv. Director (Program), PSPA (Member)

v. Representative of SPO concerned. (Member)

1.30 “Scheme” shall mean the scheme titled “Graduation and Income

Generation Scheme for People With Disabilities in Punjab” initiated by

PSPA in collaboration with PSIC with the financial support of Government of

the Punjab to provide interest free loans to Khidmat Card Beneficiaries and

other PWDs in Punjab.

1.31 “TORs” shall mean the Terms of Reference arising from the Scheme and

mutually agreed to by the Parties.

1.32 “Installment” shall mean an amount payable by the borrower on monthly

basis as recovery of the loan to Name of SPO.

1.33 “Website” shall mean the website operated by PSIC, PSPA and Name of

SPO containing the information about the scheme.

1.34 “Service Charges” shall mean charges (in percentage of disbursed amount)

quoted and agreed by Name of SPO as fee for disbursement and recovery of

loan to / from intended borrowers.

1.35 “MOU” shall means Memorandum of Understanding signed between PSIC

and PSPA

AND WHEREAS Name of SPO has agreed to provide the services on the terms and

conditions set forth in this Service Agreement.

NOW THEREFORE the parties hereby agree as follows:-

SECTION ARTICLES

No. Article No. 1

1.1

NAME OF SPO shall perform the services under this Service Agreement in

accordance with the provisions of this agreement, terms of reference set forth in

project document and MOU which are integral part of the Service Agreement.

1.2 NAME OF SPO will commence the services as soon as possible but not later

than 30 days after release of funds to NAME OF SPO.

1.3

The project will be executed according to policies and procedures of NAME

OF SPO’s, Operational Manual and guidelines of PSIC/PSPA. Operational

Manual will be submitted to PSIC along with work plan within fifteen days of

signing of Service Agreement. Updated manual (if any) will be provided

annually to PSIC also.

1.4

The loan parameters are;

Cost of the

project

PKR.250.00 million

Purpose of the

Loan

i. Working capital

ii. Purchase of Raw Material / Machineries

iii. Establishment of new business

iv. Expansion of existing business

Major objectives

of the project.

i. To reach out to the lowest-income disabled people

in Punjab to enhance their access to credit.

ii. To protect the socio-economic rights of the target

segment of the society through their social

inclusion.

iii. To encourage self-employment.

iv. To encourage skill building of the PWDs

Eligibility Criteria i. PWDs holding Khidmat Card, having good

business plan and willing to undergo 3-4 weeks

internship / orientation session

ii. All PWDs, certified from an authorized Medical

Board and have obtained training from any

Public/Private Technical or Vocational Training

Institute in Punjab.

iii. Having the ability to run / initiate business activity

iv. Having age between 18- 60 years.

v. Is not a defaulter of any other Financial Institutes,

Banks, NGOs, etc.

Priority Order i. Priority will be given to PWDs having Khidmat

Card.

ii. PWDs who have obtained training from Technical

and Vocational Training Authority (TEVTA),

Punjab Skills Development Fund (PSDF) and

Punjab Vocational Training Council (PVTC) or

from any other Public/Private Technical or

Vocational Training Institute in Punjab. Within

this group loan applications will be reviewed in

monthly cycles for eligibility check. Where there

are more applications than the number of available

loans, priority will be given to the applicants with

lower PMT Score

Average Loan

Limit

Rs. 20,000/-

Mark Up Interest Free

Repayment

period

1.5 years.

Repayment

Mechanism

Monthly Instalment

Security of loan Social Collateral

Lending

Mechanism

Individual

Application form

Fee

Nil

Processing

Charges

Nil

Article 2: Responsibilities of NAME OF SPO

2.1 NAME OF SPO shall perform the services in accordance with the project

document of the scheme, Service Agreement signed between PSIC and NAME

OF SPO and any other Terms of Reference set forth

2.2

After signing the Service Agreement, NAME OF SPO shall provide the

operational frame work/manual to PSIC to carry out its field activities to

achieve the objectives of the project in line with the vision of the government

2.3

NAME OF SPO shall draw up their overall work plan for first year and submit

the same to the PSIC within two weeks of signing the Service Agreement. The

work plan will clearly specify annual project outputs

2.4 NAME OF SPO shall demand funds from PSIC in a tranches as per actual

requirement

2.5

NAME OF SPO shall be responsible to receive applications directly from

applicant along with necessary documents mentioned in application form

prepared and provided by NAME OF SPO

2.6 NAME OF SPO shall ensure the availability of application forms free of cost

for the applicants at PSIC, PSPA and their own offices.

2.7 Guidance / Assistance in completion of application form will also be provided

by the NAME OF SPO to the applicant

2.8 NAME OF SPO shall be responsible for scrutiny of applications and visit of

the project to evaluate the feasibility / viability of business

2.9 NAME OF SPO shall arrange the 3-4 weeks orientation session/ training on

business plan development for the intended beneficiaries before granting loan

2.10 NAME OF SPO shall prepare the training module for 3-4 weeks orientation

session/training on business plan development for the intended beneficiaries

2.11

NAME OF SPO shall maintain the record of all the trainees and provide the

same to PSIC and PSPA for the purpose of graduation of the KCBs from the

Khidmat Card Program

2.12

NAME OF SPO shall recommend / approve the loan amount of the applicant /

proposed business plan after due appraisal. However the first loan shall not

exceed from the average of Rs.20,000/-

2.13

Actual loan size need of the applicant shall be determined on the basis of

following:-

a) available cash flow;

b) experience;

c) nature of business;

d) seriousness; and

e) re-payment capacity of the borrower

2.14

Name of SPO will ensure that it will not take more than 15 days to process the

loan application till approval & disbursement of loan amount after providing

03-04 weeks orientation sessions to the applicant

2.15

The complete documentation of loan and borrowers detail (name, age, CNIC

number, address, type of business, amount of interest free loan, recent

photograph etc.) will be done by NAME OF SPO as per manual of the scheme

and loan shall be disbursed preferably through Bank Account / Cheque. All

documentation will be made available to PSIC as and when required

2.16

NAME OF SPO shall ensure that the average loan size should not exceed from

Rs.20,000/- however the loan size can be gradually increased by second, third,

fourth,---- loans

2.17 NAME OF SPO shall ensure the consumption/ utilization of loans for the

purpose mentioned in application by the applicant

2.18 NAME OF SPO shall be responsible to provide any detail / information about

project / loanees to PSIC and PSPA as and when required

2.19 NAME OF SPO shall be responsible to assure the security of loan

2.20

NAME OF SPO shall obtain necessary guarantees including the requisite

social guarantee from borrower for processing the request of interest free loan

under the Scheme

2.21 NAME OF SPO shall be responsible for recovery of the loans

2.22 NAME OF SPO shall maintain their accounts as per Accounting Standards as

applicable in Pakistan

2.23 A separate recovery and disbursement accounts will be maintained by NAME

OF SPO

2.24 NAME OF SPO shall be responsible to deposit the recovered amount from the

loanees against due recovery into main recovery account as and when recovered

and the same shall be remitted to PSIC at the end of the project

2.25

NAME OF SPO shall be responsible to remit the mark-up earned from the

bank deposits of Disbursement and Recovery accounts to PSIC to be used to

meet operational expenditures relating to the project

2.26 NAME OF SPO shall be entitled to receive service charges @ ----% as agreed

in the service agreement against actual disbursed loan amount

2.27

NAME OF SPO shall be liable to receive service charges from PSIC against

actual disbursement on quarterly basis upon submission of formal request along

with proof of disbursement

2.28 NAME OF SPO shall be responsible to provide the data of all beneficiaries to

PSIC and PSPA

2.29 The SPOs shall be responsible to cover the designated areas /touch all the target

group by establishing their field offices

2.30

NAME OF SPO shall upload all detail related to scheme including detail of

their branches and their representative at their web page for awareness of the

target group

2.31

NAME OF SPO shall facilitate the Audit Firm / PSIC team/ PSPA team for

monitoring and verification of disbursed loan. The process of monitoring and

verification shall be started as and when required by PSIC and PSPA

2.32 NAME OF SPO shall participate in coordination meetings arranged by

PSIC/PSPA as and when required

2.33

NAME OF SPO shall be responsible to develop and provide the KPIs for the

impact assessment of the scheme. Broad KPIs are;

i. Increase in income

ii. Employment generation

iii. Social inclusion

2.34 NAME OF SPO shall ensure an effective system of complaints redressal in the

field as well as at their head office level

2.35 NAME OF SPO shall be responsible to repay all recovered amount from the

borrowers to PSIC as and when project completed or terminated by the parties

2.36 NAME OF SPO shall be responsible to meet the disbursement targets as

agreed with PSIC/PSPA and NAME OF SPO

2.37

NAME OF SPO shall use the data of PWDs to achieve the objective of this

income generation project and will not be used / shared with any other

organization/agency for any other purpose

Article 3: Responsibilities of Punjab Small Industries Corporation

3.1 The total amount for the Service Agreement to be made available to the NAME

OF SPO under this agreement shall be PKR250.00 million for interest free

micro lending. This amount however does not include service charges

3.2 PSIC Shall Make funds available to the NAME OF SPO on quarterly basis

upon submission of disbursement plan for the quarter for disbursement to the

target group

3.3

PSIC shall be responsible to transfer the Service Charges to NAME OF SPO

as agreed from the allocation made for this purpose under the scheme titled

“Graduation and Income Generation Scheme for People With Disabilities

in Punjab” on quarterly basis on the demand of NAME OF SPO with the

proof of actual disbursement.

3.4 The recovered amount from the borrowers will be revolved and utilized for new

lending. The NAME OF SPO will be entitled to receive Service Charges @

…% on the additional revolved amount as well

3.5 The PSIC shall extend all reasonable co-operation and assistance to the NAME

OF SPO for successful discharge of its obligations as defined in Service

Agreement

3.6 PSIC shall share the data of Khidmat Card beneficiaries and other PWDs with

NAME OF SPO as and when shared by PSPA with PSIC

Article 4: Miscellaneous

4.1 Validity

4.1.1 This Service Agreement will become effective from the date of signing of the

agreement

4.1.2

This Agreement shall be valid for a period of 02 (two) years commencing as of

the Effective Date of the Agreement. Prior to or on expiry of the Term, this

Agreement may be renewed by the mutual consent of the Parties for further

periods as agreed between the Parties on the same terms and conditions unless

agreed otherwise. The amount of funds can be enhanced in subsequent years

with mutual agreement.

4.2 Relation between Parties

4.2.1

Nothing contained herein shall be construed as establishing a relationship of

master and servant or of principal and agent as between the Parties. Name of

SPO, subject to the Agreement, shall have complete charge of its Personnel and

the services that shall be provided pursuant to the Agreement.

4.3 Notices

4.3.1

Any notice, request or consent required or permitted to be given or made

pursuant to the Agreement shall be in writing. Any such notice, request or

consent shall be deemed to have been given or made when delivered in person

to an authorized representative of the Party to whom the communication is

addressed, or when sent to such Party at the address specified in the Agreement.

4.4 Force Majeure

4.4.1

A party affected by an event of Force Majeure shall notify the other Party of

such event as soon as possible, and in any case, not later than fourteen days

following the occurrence of such event, shall provide evidence of the nature and

cause of such event, and shall similarly give written notice of the restoration of

normal conditions as soon as possible. Neither PSIC nor Name of SPO shall be

deemed to have committed a breach of the Agreement if performance of their

respective obligations is prevented by an event of Force Majeure that arises

after the Effective Date

4.5 Suspension

4.5.1

PSIC may, by written notice of sixty days to Name of SPO, suspend, in whole

or part, the services, if Name of SPO fails to perform its obligation under the

Agreement. Similarly, Name of SPO may, by written notice of sixty days to

PSIC, suspend, in whole or part, the implementation services, if PSIC fails to

ensure coordination or timely releases of funds

4.6 Termination

4.6.1 PSIC may terminate the Agreement by serving ninety days’ prior written notice

to Name of SPO, if Name of SPO fails to remedy a failure in the performance

of its obligations under the Agreement as identified in a suspension notice

issued by PSIC provided that it shall not be subject to a dispute between the

Parties, or where Name of SPO becomes insolvent or upon winding up of

Name of SPO. Name of SPO may terminate the Agreement, by serving ninety

days’ prior written notice to PSIC, if PSIC fails to pay the claim due to Name of

SPO pursuant to the Agreement or where Name of SPO is unable to continue

its operations under any event of the Force Majeure.

4.6.2

Any funds readily available with Name of SPO in its bank account relating to

the amounts provided under this Agreement shall be transferred within 30

(thirty) days of termination in writing to the PSIC after settling any service

charges which might be due to Name of SPO under the Agreement.

4.6.3

For the remaining amount due to the PSIC under the Agreement after payment

of amount, the list of outstanding portfolio of loans disbursed out of the

Agreement amount shall be shared with the PSIC along with the repayment

schedules of the disbursed loans. All repayments of the remaining Agreement to

the PSIC will be made in accordance with the repayment schedule.

4.6.4

In case of any loan defaults, list of defaulted borrowers along with their

particulars, including but not limited to their names, CNICs, addresses, loans

amounts, recovery schedules, photographs, etc., will be provided to the PSIC if

required for further proceeding as approved in the project document

4.6.5

In the event of pre-mature closure of the scheme by any party, any payment due

to Name of SPO under the Agreement shall be made to Name of SPO (X % of

the amount disbursed during the previous year).

4.7 Dispute and Arbitration

4.7.1

In the event of dispute, the Parties shall try to resolve the dispute amicably

through a process of consultation and mutual resolution. If the dispute is not

resolved through consultation, the same shall be resolved under the provisions

of the Arbitration Act, 1940 by an Arbitrator appointed with mutual consent of

the Parties. The venue of arbitration shall be at Lahore. In all such cases, PSIC

shall be responsible for making payment for service charges due for the

intervening period that is from the date of claim by Name of SPO till the date

such claim stands settled.

4.8 Limitation of Liability

4.8.1

The PSIC/PSPA teams may verified loan disbursement to the target as per

eligibility criteria if cases are not verifiable / verified by the teams on account of

inadequate evidence regarding eligibility criteria of the Borrower and/or transfer

of funds to the Borrower, in that eventuality, PSIC shall not pay service charges

until the verification of cases is complete. After completion of verification,

PSIC shall pay service charges only for the verified cases.

4.9 Assignment

4.9.1 Neither Party shall assign its rights or obligations under the Agreement to any

other person without prior written consent of the other Party.

4.10 Amendment

4.10.1 The Agreement shall not be amended, supplemented, cancelled or discharged

except by written instrument duly executed between the Parties. All

amendments shall made part of the Agreement.

4.11 Waiver

4.11.1

No failure to exercise, and no delay in exercising, any right, power or privilege

hereunder shall operate as a waiver thereof. No waiver of any breach of any

provision of the Agreement shall be deemed to be a waiver of any preceding or

succeeding breach of the same or any other provision.

4.12 Jurisdiction and Applicable Law

4.12.1 The Agreement shall be governed and construed in accordance with the laws of

Pakistan and a Court of competent jurisdiction at Lahore shall have the

jurisdiction to adjudicate the cases arising out of the Agreement.

4.13 Severance

4.13.1

If, for any reason any of the provisions contained in the Agreement becomes

invalid, illegal or unenforceable in any respect, the effect of all the other

provisions of this Agreement shall remain valid.

4.14 Data Usage and Security

4.14.1

Name of SPO shall use the data of PWDs to achieve the objective of this

income generation project and will not be used / shared with any other

organization/agency for any other purpose.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be signed in

their respective names as of the day and year first above written.

FOR AND ON BEHALF OF PSIC

Witnesses

FOR AND ON BEHALF OF NAME OF

SPO

Witnesses

e). GENERAL TERMS & CONDITIONS

1. Bid Validity: The offer will remain valid for a period of 90 days from the date of

opening of bid. The Corporation may request to extend the validity period and

successful bidder shall extend the same alongwith bid security validity accordingly.

2. Bid Security: PKR.200,000/- in the shape of Pay Order/Bank Draft in the name of

“Punjab Small Industries Corporation” accompanied with technical proposal. Bid

security in shape of cheque will not be acceptable.

3. The bid security (Pay Order/CDR) will be returned to unsuccessful bidders after

award/signing of contract /service agreement to the winning bidder.

4. The bid security would be forfeited if the successful bidder fails to sign the service

agreement within the respective due date.

5. Acceptance of Bid / Award of Contract: subsequent to approval of the proposal

(technical proposal and financial proposal) and finalization of bid process, the contract

may be awarded to the lowest bidder who has quoted the lowest rate of service charges

in accordance with the Punjab Procurement Rule- 2014.

6. Letter of acceptance. After acceptance of the bid, a letter of acceptance / advance

acceptance of tender will be issued only to the successful bidder.

7. Billing – Payment-Taxes

i. All payments will be made in Pakistani Rupees only.

ii. Payment will be made on receipt of the bill submitted by the Name of SPO

with the proof of actual disbursements on quarterly basis.

iii. Partial / piece meal payment will not be made at any cost.

iv. Taxes. The successful bidder shall have full and exclusive liability for

payment of all duties, taxes and other statutory payments payable under any or

all of the statutes / laws etc. … now or hereafter imposed in Punjab, Pakistan.

v. Withholding/Income Tax etc.(if applicable) on the amount invoiced to the

department shall be deducted at source as per income Tax Law. The bidder

along with invoice shall furnish proof of registration with Income Tax

Department.

vi. As per PST/Income tax Rules. (If SPO is exempted from Tax, exemption

Certificate may be provided).

8. No offer shall be considered if:-

i. Received without bid security.

ii. Received after time and date fixed for its receipt.

iii. Tenders unsigned.

iv. The offer is ambiguous.

v. The offer is conditional.

vi. The offer is from black listed SPO.

vii. The offer is received by telegram.

viii. The offer is received shorter validity than the required in the tender enquiry.

ix. The bidders engaged in corrupt or fraudulent practices (including collusion/

pooling) will be declared totally ineligible either indefinitely or for a stated

period of time and blacklisted from being awarded any such contract financed

by the Govt. of the Punjab.

9. The under mentioned Certificate must be signed failing which the offer shall not be

entertained/considered.

f. ACKNOWLEDGEMENT CERTIFICATE

We hereby confirm to have read carefully the description and all the terms & conditions

of bidding document. We agree to abide all these terms & conditions. We also hereby

categorically confirm that the services to be offered by us will exactly to the particulars

and specifications as laid down in the service agreement in all respects. A bank draft/pay

order of the value of Rs.200,000/- as bid security is enclosed.

SIGNATURE

Seal of the Office of the Bidder

Name & Address of the Bidder

****

………………………………………………………………………..

g) BID EVALUATION CRITERIA

Technical:

Following Evaluation Criteria will be used for evaluation of technical proposals. Firms

must provide supporting documentary evidences with their bids.

Sr.

No. Particulars

Maximum

Score

1

Working Experience in Interest Free Micro Credit

(Benchmark: Three year experience=10 score and 02 score for

additional 01 year maximum up to 20)

(Evidence: Copy of 1st & last Registration Certificate issued by relevant

body)

20

2

Total No. of Interest free Loans

(Benchmark: Every 100,000 loans has 05 score and for each additional

50,000 loans 01 score, maximum up to 10)

(Evidence: Certificate duly signed and stamped by the SPO)

10

3

Total No. of Loans to PWDs

(Benchmark: Every 2000 loans has 10 score and for each additional

1000 loans 05 score, maximum up to 20)


20

4

Recovery %age

(Benchmark: 90% has 05 score and for each additional 2% there is 01

score, maximum up to 10)


10

5

Geographic Spread in Punjab

(Benchmark: 21 districts =05 score and for every three districts there is

01 score, maximum up to 10)


10

6

No. of Employees

(Benchmark: 300 employees= 05 score and for every 100 employees

there is 01 score maximum up to 10)

(Evidence: List of Employees with CNIC duly signed and stamped by

the SPO)

10

7

Partnership with any international Microfinance organization

(Benchmark: Maximum 10 score) If yes=10 and in case of No=0

(Evidence: Partnership acknowledgement certificate duly signed by

competent authority of International organization)

10

8

Working with Federal & Provincial Governments

(Benchmark: Two years’ Experience=05 score and for every One Year

experience there is 01 score)

(Evidence: documentary proof duly signed by relevant Government and

SPO)

10

TOTAL SCORE 100

Important:

The bidder fulfilling the technical evaluation criteria with at least 65% score shall be

selected for opening and evaluation of their financial bid.

Financial:

Least cost method will be adopted in financial appraisal for selection of the SPO

h) FORMAT OF ALL SECURITIES REQUIRED

o Pay orders, Call deposit receipts duly issued from the scheduled banks.

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